It’s always advisable to avoid getting into financial snag. Avoiding bad credit should be the topmost priority. The most appropriate way of avoiding bad credit is to follow the proverb-“Cut your cloth according to your cloth”, i.e. be satisfied with whatever you have. It doesn’t mean that you should live like a miser, but at the same time, not go for things which are unaffordable. It also implies that you should not borrow something which cannot be paid back. There are various ways of avoiding bad credit.
On the basis of money made by you and your needs, a budget should be prepared every month, to get a fair idea of the money you can spend and the money you can save. The budget should not be made just for the namesake. It should be strictly adhered to. The buying of those things, which supersede your budget, should be sternly averted. Before going for a loan, make sure if you can repay it. If it’s beyond your reach, do not even think of taking a loan. Do not follow herd mentality. Just because one of your neighbors has bought a hi-tech car, it does not justify you going out of the way to buy the same type or a higher quality of car. Look at your capacity and then give it a thought. The neighbors may try to act over smart at times, but they would not lend any sort of help if you face financial crisis. So, be in your senses and behave accordingly. Avoid using credit cards in the first place. Even if you feel like using them, select the ones with high rates of interest and high limits. Cash transaction should be preferred as far as possible. Always ask for bills whenever you shop. Try out bargaining on MRP (Maximum Retail Price). If you have a bad hand at bargaining, prefer going to Departmental stores or the stores having fixed price. Many a times, product of sub standard quality is sold at lower prices. To avoid this, it’s better to have prior information about the product quality. Excessive use of household gadgets should be avoided. For instance, telephone should be used only if there is a genuine need of speaking to the concerned person. Lights and fans should be economically used. The use of air conditioner should be avoided between 6:00 am and 10:00 p.m, as it draws maximum current and also generates CFCs (Chlorofluorocarbons). This will result in reduction of phone and electricity bills. It will largely save money.
All these efforts will help in money management. You know that life is truly unpredictable. Anything can happen at any time, say-any of your family members can be taken ill or suffer a mishap, there may be a sudden hike in school fees, or some gadgets my wear out and require a sudden repair. The money saved through finance management may help under such circumstances. It’s rightly said, “Penny saved is penny gained”. If you practice this saying, your life will be much beautiful.
